I’m a staff writer covering all things Wall Street and Investing. I have a love hate relationship with the world of finance. I am fascinated by the industry’s power and influence around the globe, and the ingenuity of the people it employs. Not so much a fan of the lack of accountability when the system fails—which it often does: I'm always on the hunt for people and companies to profile.

New York Attorney General Eric Schneiderman wants to know if employees of some retail giants are being sold short.

The investigation is not so much about wages but rather how the wages are paid out by employers.

Walmart, McDonalds, Home Depot and Walgreens are some of the retailers that pay their New York employees using prepaid cards. Schneiderman is looking to find out more about the process; if it’s costing employees more in fees and whether or not employees have an easy way to choose how they are paid.

“We are concerned about excessive or insufficiently disclosed fees which may unduly reduce employees’ take-home pay,” Schneiderman’s office said in the letters to the companies which were obtained by Bloomberg News.

Walmart launched its payroll card in 2009. Shortly after, the company met with New York’s Department of Labor to provide it “full details” on how the program works, according to Walmart spokesperson.

McDonalds says it offers payroll options in the form of direct deposits or pay cards. See the full statement from the company at the bottom of this story.

Messages sent late this evening to Walgreens have yet to be returned. WalgreenWalgreen employees aren’t required to accept wages on the cards a spokesperson told Bloomberg.

Under New York state law employees must give advance written consent to be paid by payroll cards and any agreement to receive wages by the cards can’t be a condition of employment.

It’s unlikely that employees at these retailers are forced to use the prepaid cards as a means to get paid but the AG likely wants to know how difficult it might be for one of them to switch over to more traditional payroll methods. Also, he may want to know what the default method of payroll.

If the default is the prepaid cards then that might be trouble. Why? Because it’s argued that prepaid cards can be loaded with fees, more so than traditional checking accounts. Consumer Reports sampled 16 prepaid cards and found 13 of the 16 prepaid cards charge monthly fees, ranging from $2.95 for the nFinanSe card to $9.95 for the Vision Premier card and the Univision card. Want to take out cash? Twelve of the 16 cards impose a fee for checking balances at ATMs, ranging from 45 cents to $1 per balance inquiry.

The rise of prepaid cards has been steady recently. The prepaid card is the fastest growing non-cash method of payment, according to the Federal Reserve. That’s particularly true among the “unbanked” and “underbanked” (those who don’t use mainstream banking options because of their costs) where the proportion of households that have used a prepaid debit card climbed from 12.2 percent to 17.8 percent in 2011.

Plus, prepaid cards often don’t have the protections of a checking account.

The prepaid payroll cards are not an exception. A story in the Timesearlier this week found many hourly wagers are feeling the pain of fees from payroll cards. The Times reported that one provider charged $1.75 to make a withdrawal from most A.T.M.’s, $2.95 for a paper statement and $6 to replace a card while some have to pay $7 inactivity fees for not using their cards.

Among the worst scenarios are employers who may refuse to switch the payroll method away from the prepaid cards. From theTimes:

For Natalie Gunshannon, 27, another McDonald’s worker, the owners of the franchise that she worked for in Dallas, Pa., she says, refused to deposit her pay directly into her checking account at a local credit union, which lets its customers use its A.T.M.’s free. Instead, Ms. Gunshannon said, she was forced to use a payroll card issued by JPMorgan ChaseJPMorgan Chase. She has since quit her job at the drive-through window and is suing the franchise owners.

Of course, there’s an incentive for banks that may want to partner with large retailers for the prepaid cards. Fees are a big money maker for banks. The New York AG’s office is asking for a report of fees paid by employees or deducted from accounts as a result of payroll cards. He also wants to see the communication between the employers and the financial institution issuing the cards.

Schneiderman’s probe of employee prepaid payroll cards is one to watch.

McDonald'sMcDonald's and our independent franchisees value the contributions that each of our employees make every day in the restaurants. McDonald’s commitment is to offer choices regarding how employees receive their wages, as well as clear communication and comprehensive education regarding payment options. As part of its wage payment program, McDonald’s offers electronic payment options in the form of pay cards or direct deposit to employees. The choices McDonald’s provides its employees include several ways for them to receive their pay without incurring fees.

In restaurants operated by independent franchisees, the franchisees determine the payment options for their employees.

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Oh boy, Halah, every time you place the expletive “Wal-Mart” in your title, the haters arrive in droves. I predict they’ll be arriving shortly.

No question “uh-boot-it” the workers should have their choice of how they want to be paid. In the case of McDonald’s, there are thousands of franchise owners, who own their own companies, who you would have to contact. Very few stores are company owned.

The way Jump John refers to the connection between Barack Obama and Saul Alinsky, one might think the president and the community organizer were golf buddies… except for the stubborn fact Alinsky died in 1972 when Obama was 10. (Idiots)From (Bill Moyers report Feb 3, 2012)